Neighborhood Stabilization Program
The Neighborhood
Stabilization Program (NSP) provides down payment assistance in the amount of up to $40,000 to help qualified buyers purchase
bank-owned foreclosure properties (sometimes called "REOs). To qualify for NSP the home purchased must be located
in the Cities of Garden Grove or Westminister and they must have been acquired by the home seller through a foreclosure process.
These types of homes are sometimes called Real Estate Owned or REO properties. Homes that are in the process of foreclosures
including "short sales" are not eligible.
The assistance provided by NSP includes
up a $40,000 "silent" down payment assistance loan. This loan requires no monthly payments for 30 years.
It is repaid in 30 years, when the home is sold, or if the owner does a cash-out refinance of their first mortgage, whichever
comes first. There are no interest charges with the NSP loan (0%). Since the NSP loan requires no monthly
payments, your lender will be able to treat the loan as additional down payment from you.
The
NSP loan is combined with your down payment (a minimum of one percent - 1% - is required), your first mortgage, and other
programs that might be available to help you purchase the home.
To qualify for NSP assistance, you
must meet the following criteria:
The household income must not exceed 120% of
the County median income (see chart below).
You must be able to verify your income
and assets with pay stubs, bank statements, tax returns, etc. "Stated Income" or "Stated Assets" are
not accetable.
You must have an acceptable personal credit history (usually this
means a credit score of 620 or higher)
Here are the current
income limits for the NSP program: